Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 11/12/2012

Korea - Tax authorities focus on offshore hidden assets 

November 12:  Korea’s tax authority in February 2012 formed a special tax force to trace hidden wealth of high-value taxpayers.

The National Tax Service reports that its efforts revealed a “massive number” of high-income earners had engaged in transactions and tactics to “dodge taxes” and that it had secured approximately KRW 860 billion (approximately US $791 million) in unpaid taxes from these high-income individuals during the first seven months of 2012.


Korea’s tax authority has implemented an “offshore delinquent tax tracking” taskforce to identify individuals who are living “luxury lifestyles” and hiding assets overseas, and plans to use mutual assistance agreements with other countries to investigate suspected unpaid tax delinquent individuals engaging in economic activities both in Korea and offshore.


Read an October 2012 report [PDF 2.4 MB] prepared by the KPMG member firm in Korea: Tax Brief (October 2012): KPMG update on current issues and trends in Korean tax


This KPMG report also includes descriptions of recent court cases and rulings concerning these topics:


  • Withholding tax on independent personal services
  • Allocation of price to land and buildings, and whether price allocation for land for contributed acceptance is included in fair market value
  • Whether the sale of “trusted real estate” is exempt from VAT
  • The consolidated taxation system



©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to go-fmtaxnewsflash@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now

Contact us